Overpaid by previous employer, should I have to pay it back ?

Austinhead

Hi,

Hoping someone can offer some advice here. I was working in a school last year (non-teacher). I only worked PT and earnt £500 a month.

In the summer holidays I sent in my resignation letter, this was accepted and it was agreed that my finish date would be 1st Sept.

I rcvd a further 4 months salary by mistake. When the 1st payslip came through I wondered whether I was perhaps entitled to it, couldn't remember the date I started, or whether holidays impacted things, anyway, I smiled and took the money. I rcvd a further 2 payslips and pay for Oct and Nov. Now, i'll be totally honest here, my current job only pays £500 a month, which I can't live off and i'm really struggling financially. Given it was my sons birthday in Oct, my daughters in Nov and then obviously Christmas (plus major car issues and car tax in Dec) I spent the money. I know I should have contacted the school and that it would catch up with me, but i could really use the money

In dec my old boss called me, explaining he had made a big mistake and realised that I was still getting paid. He said the council would be contacting me to request the money back. He apologised and confirmed that I would be hearing from the council for them to get the money back. The next day I got another payslip and another £500 pay into my bank account.

Sure enough I now have a bill just short of £2000 which I clearly do not have.

I suppose my question is, should I have to pay this money back?. I didn't make a mistake, I told the school and have it in writing that they accepted my resignation and the finish date.

Any advice you can offer would be very helpful, as yet i've not responded to councils request for the money.

Thanks.

BTW I have now used the budget brain to get my finances in check and am being very strict with myself.

BackOnTrack

If you were underpaid would you think you were entitled to receive the amount you were underpaid by? Answering that questions should give you the answer to the question you have just asked.

dmg24

BackOnTrack wrote: »

If you were underpaid would you think you were entitled to receive the amount you were underpaid by? Answering that questions should give you the answer to the question you have just asked.

A good common sense answer, something which is severely lacking on the OP's part.

Austinhead

I know, I was clutching at straws because I am struggling big time financially and the thought of adding another £2k to the list of debts does not sit well. As I stated I did realise that I should have contacted the employer sooner.

Your sympathy is underwhelming.

Austinhead

If you tell the tax credits about a change, and they continue to pay out at the same rate resulting in over payment, you don't need to pay the money back.

lucylucky

Austinhead wrote: »

I know, I was clutching at straws because I am struggling big time financially and the thought of adding another £2k to the list of debts does not sit well. As I stated I did realise that I should have contacted the employer sooner.

Your sympathy is underwhelming.

Stupidity, in the form of sticking your head in the sand, rarely elicits sympathy.

Austinhead

I was asking for advice, not criticism, I am good enough at criticising myself.

As I said:

If you tell the tax credits about a change, and they continue to pay out at the same rate resulting in over payment, you don't need to pay the money back.

I don't see this as being too indifferent.

iamana1ias

Austinhead wrote: »

I was asking for advice, not criticism, I am good enough at criticising myself.

As I said:

If you tell the tax credits about a change, and they continue to pay out at the same rate resulting in over payment, you don't need to pay the money back.

I don't see this as being too indifferent.

It's completely different, as you have a contract with your employer to repay any overpayments, however they occur.

Still, it was probably worth it for your kids to have stuff you couldn't really afford, eh?

KiKi

Hi OP

In answer to your question: yes, you have to pay it back. However, they should allow for a repayment plan to be set up rather than demanding the whole £2000 in one go.

On a side note, it's the attitude of "it's their mistake so I think I should be able to keep it" that's getting people's backs up. I'm sorry you're struggling financially, but that's not a reason to take a salary for something you haven't done. I can understand you thinking the first payment was for holidays or back pay owed, but after that you knew it wasn't yours. Legally they can get it back from you, and they will do - but if you get back to them and ask for a repayment plan that's better than waiting for a demand for the whole amount.

HTH
KiKi

lucylucky

Austinhead wrote: »

I was asking for advice, not criticism, I am good enough at criticising myself.

As I said:

If you tell the tax credits about a change, and they continue to pay out at the same rate resulting in over payment, you don't need to pay the money back.

I don't see this as being too indifferent.

It is vastly different.

You should respond and say to the council that you wish to set up a re-payment plan with them if at all possible.
Do this sooner rather than later.

Austinhead

Thankyou Kiki for answering the question, that was the kind of answer/response i was looking for.